On December 16, the Department of Justice (DOJ) announced that a Texas physician pleaded guilty in connection with an alleged scheme involving over-the-counter (OTC) COVID-19 tests, which purportedly resulted in $5.5 million in fraudulent claims.
According to court documents, Mark Mazzare, M.D., 57, of Tyler, Texas, participated in an arrangement where Medicare beneficiary identifiers (BINs) were purchased and used to submit claims for OTC COVID-19 test kits. The agreement, described as the purchase of “lead packages,” allegedly included BINs and audio recordings falsely purporting to represent Medicare beneficiaries requesting the tests. It is alleged that many of these beneficiaries did not request nor need the tests.
From November 2022 through June 2023, Mazzare allegedly facilitated the shipment of OTC COVID-19 tests to Medicare beneficiaries whose BINs had been acquired, leading to the submission of over $5.5 million in claims to Medicare. Of this amount, Medicare reimbursed approximately $3.44 million for tests that the DOJ claims were medically unnecessary and ineligible for reimbursement.
Mazzare pleaded guilty to conspiracy to defraud the United States and to purchase, sell, and distribute Medicare beneficiary identification numbers. He now faces a maximum penalty of five years in prison. A sentencing hearing has yet to be scheduled.
The DOJ’s announcement underscores its focus on addressing alleged healthcare fraud schemes that involve federal healthcare programs.
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